When the reserve requirement is increased, ________.
A. the excess reserves of member banks are increased
B. a single commercial bank can no longer lend dollar-for-dollar with its excess reserves
C. required reserves are changed into excess reserves
D. the excess reserves of member banks are reduced
Answer: D
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How will each of the following affect the steady-state growth rate of the standard of living? Assume the economy is currently in the steady state
a. an increase in the depreciation rate b. an increase in the growth rate of labor-augmenting technological change c. a decrease in the saving rate d. a decrease in the labor-force growth rate
A pure positive income shock leads to
A) an increase in leisure and consumption. B) an increase in leisure and work. C) an increase in work and consumption. D) an increase in leisure and taxes.
An international agreement from 1947 designed to lower tariffs was
A) the General Agreement on Tariffs and Trade. B) the World Trade Organization. C) the World Agreement on Tariffs and Trade. D) the Trade and Tariff Agreement.
The optimal bidding strategy for an oral auction is
a. To shade your bid below your true value and drop out well before it is reached b. To shade your bid below your true value and drop out just when the shaded amount is reached c. To drop out when the bidding exceeds your true value d. To size up your competition to determine how much to shade your bid